American stockbroker Peter Schiff debated with President of ShapeShift - Erik Voorhees - in the Bitcoin Debate program. The two leaders of financial thought discussed the most important issues regarding Bitcoin and their basic Blockchain technology, questioning the possibilities of mass adoption and comparing cryptocurrencies with other types of assets, such as money and gold.
Voorhees, the bitcoin bull of debate, said that Bitcoin would eventually become a substitute for state-supported money, while government structures would be reorganized using Blockchain technology. Voorhees argues that Bitcoin is "an exceptionally good money" praising its proven scarcity, divisibility, durability, flexibility, portability and decentralized character, stating:"Bitcoin will win because there is competition in money and it is currently the best available measure. Because it is decentralized, it can not be stopped".
Voorhees noticed that mass adoption would not take place immediately, arguing that Bitcoin would gradually be used as an occasional alternative to fiat currencies.
In turn, the bitcoin skeptic, gold investor and financial commentator Schiff argued that Bitcoin will not succeed in the future and will act as a substitute for fiat money, because it is not supported by any bodies, and is only endowed with the trust of the buyers, which largely stems from speculation.
Schiff talked extensively about the price-making properties of precious metals, namely gold, arguing that the fact that the US dollar was once supported by gold and allowed it to accumulate trust in time. He also said that gold does not have to compete with any other resource, including Bitcoin, which "replicates all the properties of gold, except the most important one - metal itself". Schiff's argument why gold is valuable as an element is based on the fact that it is a rate and has been valued as a commodity for thousands of years.
Schiff, as well as many supporters of gold for Bitcoin, expressed concern that it is not possible to find out how much Bitcoin is worth in terms of gold or any other physical commodity:"There is no real value in itself as a commodity, there is no way to link the price of Bitcoin to the price of anything else".
Will we choose an optimistic or pessimistic path for Bitcoin, we will agree on one thing - crypto-currencies are an innovation, modern and advanced technology, they are a payment child that develops despite going through various types of "colds". It is what will certainly be a significant part of the global economy in the near future.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The first attempt to break through the technical resistance at the level of $6,809 was unsuccessful, but the pull-back was not that deep and the price is now consolidating around the support at the level of $6,519. The momentum is still positive and strong, so the bulls might attempt again to rally higher. Their first target is seen at the level of $6,993.
